Published 8:56 a.m. ET July 21, 2019
Bernie Sanders and Elizabeth Warren are already trying to do something about student loan debt. That's why the 1.6 trillion dollar issue could play a big part in the 2020 election.
Just the FAQ, US TODAY
Student loans are attractive in every sense of the word. I learned that the source was hard.
I applied for some colleges during high school, and with gratitude, I accept with almost everyone. But when the time came to choose college, I chose the most cheapest one in the end. I knew I was responsible for putting a lot of the bill on my education, and I didn't want to graduate with a debt mountain.
However, I knew that no matter where I went to school, I had no choice but to secure student loans. And with thanks, I was able to limit myself to federal loans, which usually come with more favorable loan terms than private loans. However, there are some things about borrowing money for the college I want to know before I start my studies. Here are a few things that stand out in my mind.
Is the college worth it? These are the top 50 schools that pay for the most
Student loan crisis: t These are the least paid schools
1. I have to start paying them back six months after they graduate
Because I took federal loans, I was given a six month grace period when I graduated to make payments. In the major student loan scheme, six months are very generous. For me, however, it lit an unwelcome fire.
It is clear that I have not carefully reviewed the terms of my loans, for some reason I was of the opinion that I received a period of grace all year before payments became due. I might have heard that misrepresentation somewhere and it was stuck in my head, but it wasn't until I was coming to a stage that I took the time to get the right time on my loan repayment terms.
If you are going to borrow for the college, make sure you carefully review the terms involved. Private loans often do not have a period of grace, so you need to know about it.
2. I would pressure to work at all times during my studies
Many people keep a part-time job down during college. I kept down a lot. The reason? I knew I had to repay my loans eventually, and I wanted to save money to make this easier when the time came. I also wanted to minimize what I needed to borrow.
Of course, my studies did not affect my studies; but they are did influence my schedule to the point where I had to forward social plans often to go to a job. In addition, I had friends in a similar boat who worked a lot to get their loans and would limit future loans, some of which hurt academically. One friend actually had to re-take a course that she failed partly because she did not have enough time to study for her final examination.
There is nothing wrong with working during college and using your earnings to extinguish your student debt or to avoid extra debt. But be careful, because if you start becoming weaker academically, you will not do any favor for yourself.
3. I feel the mental weight of having a debt
Before college, I never paid money to anyone in my life. Although I opened a credit card early, I managed to pay my bills on time and in full every month. On the other hand, my student loans were the type of debt I had that hung over my head for an extended period of time, and sometimes that idea was just after I got it.
If you are going to get a loan for the college, be aware that students may experience pressure as a serious point of distress at different stages of life. My stress was now a very difficult way – because I hated the idea of being in debt and having money owed to me, I pushed myself to pay my student loans very quickly after they achieve degree. But if that debt went back for years, I am sure it would be me.
Many of us have no option but to take out loans for college. If you are to finance your studies that way, be careful and know what you are registering. The more research you do before you borrow, the less likely you are to make a mistake and regret.
It is owned by the Motley Fool and MasterCard and Visa, and recommends American Express. We firmly believe in the Golden Rule. If we don't recommend a close family member, we wouldn't recommend it to The Ascent either. Our number one goal is to help people get the best offers to improve their finances. This is why the editorial opinions are one opinion and some advertisers have not previously reviewed, approved or endorsed them. The Ascent has editorial content separate from Motley Fool's editorial content and is created by a variety of analyzers.
Motley Fool is a material partner of TODAY USA which offers financial news, analysis and commentary designed to help people take control of their financial lives. Its production material is independently of US TODAY.
Save thousands of student loan interest
Motion from Motley Fool: Many people are seeking lower student interest rates as they do not take time to research their refinancing options. Picks of the best student loan providers can help you save thousands of dollars on interest over time. Click here to find the best student loan providers we could find in 2019.
Read or Share this story: https://www.usatoday.com/story/money/2019/07/21/student-loans-debt-crisis-what-i-wish-i-had-known-before-college / 39697009 /